As a new first-time owner of an electric vehicle, I thought it would be helpful to do a series of posts on some of the questions I had getting my first EV, a 2016 Chevy Spark EV, in January 2019.
I get a lot of questions about driving an electric vehicle. People are interested, but just not sure about the day-to-day implications of the differences between gas powered vehicles and an EV.
The most common question I get is: “How much does it cost to drive an EV? Isn’t it more expensive?” We’re gonna break this one down over multiple posts. Let’s start off with the cost of actually purchasing a vehicle.
When most people ask about the expense of driving an EV, they are typically asking how much they cost to purchase. Teslas are the most well-known brand, and since they are a luxury vehicle – with the price to match – the automatica assumption is that all EVs are too expensive for most people. And without a doubt, new EVs come at a premium. Most new models price around $30k and up. Like most people I was on a budget, and a new Tesla – or any other new EV – was just too expensive. In my research, what I discovered was the “dirty little secret” very few people are talking about. It’s called buying a used EV.
By buying used versus new, you let the original owner pay the so-called “electric premium!” This is because the resale value of EVs often plummet on the used market (Teslas excluded). First, this is because most EV buyers are enthusiasts and want to get the “next new thing.” They often lease the vehicles for 3 years, then trade it in for the newest model.
Second, because EVs are relatively new, buyers are often apprehensive about a used model’s battery life. Of course that is a real issue, and can vary widely for many reasons. In the majority of cases, EV batteries have been shown to last 8 to 10 years or more. Most manufacturers are aware of this issue and offer warranties on battery life. Personally, I bought a Certified Pre Owned (CPO), because it added an extended warranty that includes the battery. (There’s also tests the dealer can perform on the battery to get an idea of the battery capacity. Insist on it when you’re car shopping.)
To give you an idea of the kind of depreciation you can expect, my Spark sold for about $26k new; as a three year old car, it’s common to see them as low as $8000, but typical is anywhere between $9-12k. While this kind of depreciation is bad if you’re the new car buyer, this makes for a tremendous value for a used car buyer. Obviously I was sold!
Next we’ll talk about the expense of things like repairs and maintenance.